Parks: U.S. Game Ad Spending to Break $2B in 2012


In a recent study, “Electronic Gaming in the Digital Home: Game Advertising,” Parks Associates estimated that spending on game advertising in the United States will grow from $370 million in 2006 to more than $2 billion in 2012.

That translates to a compound annual growth rate of 33% -- a higher rate than television, radio, print and Internet.

“Advertising in electronic games had an average monthly household expenditure of less than 50 cents in 2006, while broadcast TV was at $37, meaning advertisers are not using the gaming medium to its full potential,” said Yuanzhe Cai, director of broadband and gaming at Parks. “If executed correctly, game advertising can provide a win-win solution for advertisers, developers and publishers, console manufacturers, game portals and gamers.”

Additionally, the study found that in-game advertising will experience the highest growth rate among the various categories of game advertising methods, increasing from $55 million in 2006 to more than $800 million in 2012.

The breakdown: Dynamic in-game advertising in PC, console, mobile and casual games will grow from 27% of the in-game advertising market in 2006 to 84% in 2012.